How does interpret finance deduction for r & d?
Consultations to finance can know what the interpretation of the Administration on tax law. The companies obtained through this instrument a more practical view of the tax incentives.
It is interesting to know the position of the Administration in these areas. In general terms, the interpretation of the Treasury is restrictive, trying to narrow to maximize this deduction through resolutions and responses to consultations, some of which we collect in this issue.
Research and development
Technological innovation
On the other hand, the Administration is not likely to benefit from the deduction for expenses of technological innovation technology acquisition provides advanced for an information and management system internal more advanced and with new featuresSince the activity of the entity does not incorporate new technical knowledge and the outcome of the investigation is not likely to lead to a new product, these applications there are in the market (27/2/2001).
Example of deduction of r & d
A company has conducted r & d activities. Expenditure for the financial year 2002, these activities are as follows:
- 30,000 euros for staff costs and consumption of materials.
- 6,000 eur in respect of repayment subject to r & d investments.
- He has received 1,500 euros for the subsidy for financing of expenses for the financial year and 2,000 for financing of purchase of investment goods, of which EUR 400 are charged as income in the year.
- Expenditure in the financial years 2000 and 2001 these activities amounted to EUR 20,000 and 30,000, respectively.
The basis of the deduction is composed of the following concepts:
- Costs: 30,000
- Amortization: 6,000
- Grants: - 1.235 (1.900x65%: 1,500 received for current expenditure and 400 charged as income)
Total base deduction: 34.765 EUR
- Average of expenditure from the previous two years: (20,000 + 30,000) / 2 = € 25,000
- Amount of deduction: 10.429,5 (34.765 x 30%) + 1953 (34.765 - 25,000 = 9.765x20%)
Total deduction: 12.382,5 EUR
The application of the deduction has the limit of 35 per cent of the liquid share. The excess may be applied in the fifteen years successive and immediate